Los Angeles, CA (PRWEB) October 03, 2013
The Dollar and Variety Stores industry is one of the fastest-growing industries in the retail sector. IBISWorld estimates that revenue will increase at an average annual rate of 4.8% to $59.8 billion in the five years to 2013. According to IBISWorld Industry Analyst Natalie Everett, “The industry has successfully passed lower prices, on a wide range of merchandise, down to consumers, enabling growth.” During the recession, households began to pinch pennies with both consumer sentiment and disposable income falling. As a result, the industry has attracted new value-focused, middle-income consumers who have not traditionally shopped at dollar and variety stores. From 2012 to 2013, revenue is expected to grow 3.8%.
With strong, rising sales, the industry has had rapid expansion in the five years to 2013. In particular, the industry's major players, Dollar General, Family Dollar Stores, Dollar Tree Stores and Big Lots, which have a large market share, have established new stores to capture a larger share of consumers' dollars. As such, the number of industry establishments is estimated to increase at an average annual rate of 2.6% to 39,923 in the five years to 2013.
“While depressed spending conditions have brought in new customers looking for value-priced food and sundries, households are reducing spending on discretionary items,” says Everett. Consumables generally have lower prices compared with nonconsumables, so average industry profitability has dropped slightly during the past five years.
In the five years to 2018, industry revenue is expected to increase, mainly supported by low-income households (the industry's largest market). Further, as a result of the recession, consumers in higher income brackets became more price-conscious, providing additional support to the industry. However, as the economic recovery gains traction, a portion of higher-income consumers will likely reduce their shopping at dollar and variety stores in favor of their prerecession habits of visiting discount department stores. Furthermore, increasing external competition from large-format stores, like Walmart, is expected to limit the industry's growth over the five years to 2018.
For more information, visit IBISWorld’s Dollar and Variety Stores in the US industry report page.
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IBISWorld industry Report Key Topics
This industry retails general merchandise such as apparel, automotive parts, dry goods, hardware, groceries and home furnishings. Typically, industry operators retail these goods at discounted prices. The industry does not include department stores, warehouse clubs or grocery stores.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.